Report on Recipient Audit Performed on the National Association of Friendship Centres
Name: National Association of Friendship Centres
Location: Ottawa, Ontario
Default status at time of audit: Not in default
Current default status: Not in default
Current Executive Director: Erin Corston
Time period covered by audit: April 1, 2012 to March 31, 2013
Amount of AANDC funding audited: $30,030,764.40
Background
Indigenous and Northern Affairs Canada (INAC), formally known as Aboriginal Affairs and Northern Development Canada (AANDC), selected the National Association of Friendship Centres in Ontario for a recipient audit based on their 2012-2013 risk assessment score and other risk factors.
The objective of the recipient audit was to provide assurance that funding provided to the recipient by INAC was spent for its intended purposes and is in compliance with the terms and conditions of the 2012-2013 Funding Agreement. The objective was achieved through:
- Examination of the effectiveness of the operations of the Financial Management Control Framework in place at the National Association of Friendship Centres; and
- Conduct of audit procedures on the eligibility of the expenditures claimed under the terms and conditions of the Funding Agreements with AANDC.
Samson & Associates, an independent audit firm, was commissioned by INAC to undertake the recipient audit. The audit procedures were performed from November 25, 2013 to January 31, 2014. The audited amounts of this report present fairly, in all material respects, the costs eligible and the audit adjustments of the National Association of Friendship Centres for the provision of programs, services and activities to its members for the period audited.
Findings
The procedures performed identified that internal financial control processes are mostly in place, and well managed. There are, however, a few procedures that identified control weaknesses within governance, program administration, and financial management. Addressing these internal controls wills strengthen how the Recipient manages and allocates it funds in accordance to the agreement. The following are some key findings and key recommendations identified in the audit report.
Governance by Chief and Council
The procedures performed identified areas where there are opportunities to improve governance and administration in support of programs funded by INAC. The key recommendation is that the recipient formalize the monitoring processes and ensure that all monitoring activity is properly recorded as per their Administration Manual.
Band Management
The procedures performed identified the following observations and areas of improvement with respect to Band financial management procedures. It is recommended that all cheque requisitions be signed off and approved by two officers. It is recommended that salaries are properly allocated based on funding received for each program. The recipient should create a checklist to ensure the standardization of all file documentation and that files are complete.
Current Status
A copy of the final report has been sent to the recipient. INAC and the recipient are working together to address the findings.
Disclaimer: This audit summary was prepared based on information contained in a Recipient Audit Report on National Association of Friendship Centres for INAC. The report produced for INAC is intended solely for the information and use of the Recipient and INAC Management. The audit summary only presents limited information on the general findings based on the audit procedures performed and does not provide information on the detailed procedures of findings. Consequently, this summary may not be appropriate for the purpose and use of the reader.